Using the information from AppleResources_Lesson5.docx (Balance Sheet, Income Statement and Statement of Cash Flows), compute the following Ratios for 2012:
1.Current Ratio = Total Current Assets/Total Current Liabilities
2.Debt to Equity Ratio = Total Liabilities/Total Shareholders’ Equity
3.Inventory Turnover Ratio = Cost of Sales/Average Inventory
4.Return on Assets Ratio = Net Income/Average Total Assets
5.Gross Margin Ratio = Gross Profit/Net Sales
6.Profit Margin Ratio = Net Income/Net Sales
7.Return on Equity Ratio = Net Income/Average Shareholders’ Equity
8.Working Capital = Total Current Assets – Total Current Liabilities
Apple 10-K; Sep 29, 12 (Selected
statements)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions,
except number of shares which are reflected in thousands and per share amounts)
|
|
|
Years |
|
|||||||||
|
|
|
September 29, 2012 |
|
|
September 24, 2011 |
|
|
September 25, 2010 |
|
|||
|
Net sales |
|
$ |
156,508 |
|
|
$ |
108,249 |
|
|
$ |
65,225 |
|
|
Cost of sales |
|
|
87,846 |
|
|
|
64,431 |
|
|
|
39,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
68,662 |
|
|
|
43,818 |
|
|
|
25,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|||||||||
|
Research and development |
|
|
3,381 |
|
|
|
2,429 |
|
|
|
1,782 |
|
|
Selling, general and administrative |
|
|
10,040 |
|
|
|
7,599 |
|
|
|
5,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
13,421 |
|
|
|
10,028 |
|
|
|
7,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
55,241 |
|
|
|
33,790 |
|
|
|
18,385 |
|
|
Other income/(expense), net |
|
|
522 |
|
|
|
415 |
|
|
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
55,763 |
|
|
|
34,205 |
|
|
|
18,540 |
|
|
Provision for income taxes |
|
|
14,030 |
|
|
|
8,283 |
|
|
|
4,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
41,733 |
|
|
$ |
25,922 |
|
|
$ |
14,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|||||||||
|
Basic |
|
$ |
44.64 |
|
|
$ |
28.05 |
|
|
$ |
15.41 |
|
|
Diluted |
|
$ |
44.15 |
|
|
$ |
27.68 |
|
|
$ |
15.15 |
|
|
Shares used in computing earnings per share: |
|
|
|
|||||||||
|
Basic |
|
|
934,818 |
|
|
|
924,258 |
|
|
|
909,461 |
|
|
Diluted |
|
|
945,355 |
|
|
|
936,645 |
|
|
|
924,712 |
|
|
Cash dividends declared per common share |
|
$ |
2.65 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
CONSOLIDATED BALANCE SHEETS
(In millions,
except number of shares which are reflected in thousands)
|
|
|
September 29, 2012 |
|
|
September 24, 2011 |
|
||
|
ASSETS: |
|
|
||||||
|
Current assets: |
|
|
||||||
|
Cash and cash equivalents |
|
$ |
10,746 |
|
|
$ |
9,815 |
|
|
Short-term marketable securities |
|
|
18,383 |
|
|
|
16,137 |
|
|
Accounts receivable, less allowances of $98 and $53, |
|
|
10,930 |
|
|
|
5,369 |
|
|
Inventories |
|
|
791 |
|
|
|
776 |
|
|
Deferred tax assets |
|
|
2,583 |
|
|
|
2,014 |
|
|
Vendor non-trade receivables |
|
|
7,762 |
|
|
|
6,348 |
|
|
Other current assets |
|
|
6,458 |
|
|
|
4,529 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
57,653 |
|
|
|
44,988 |
|
|
Long-term marketable securities |
|
|
92,122 |
|
|
|
55,618 |
|
|
Property, plant and equipment, net |
|
|
15,452 |
|
|
|
7,777 |
|
|
Goodwill |
|
|
1,135 |
|
|
|
896 |
|
|
Acquired intangible assets, net |
|
|
4,224 |
|
|
|
3,536 |
|
|
Other assets |
|
|
5,478 |
|
|
|
3,556 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
176,064 |
|
|
$ |
116,371 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
||||||
|
Current liabilities: |
|
|
||||||
|
Accounts payable |
|
$ |
21,175 |
|
|
$ |
14,632 |
|
|
Accrued expenses |
|
|
11,414 |
|
|
|
9,247 |
|
|
Deferred revenue |
|
|
5,953 |
|
|
|
4,091 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
38,542 |
|
|
|
27,970 |
|
|
Deferred revenue – non-current |
|
|
2,648 |
|
|
|
1,686 |
|
|
Other non-current liabilities |
|
|
16,664 |
|
|
|
10,100 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
57,854 |
|
|
|
39,756 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
||||||
|
CONSOLIDATED (In millions, |
||||||||
|
Shareholders’ |
|
|
||||||
|
Common stock, no par value; 1,800,000 shares authorized; |
|
|
16,422 |
|
|
|
13,331 |
|
|
Retained earnings |
|
|
101,289 |
|
|
|
62,841 |
|
|
Accumulated other comprehensive income |
|
|
499 |
|
|
|
443 |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
118,210 |
|
|
|
76,615 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
176,064 |
|
|
$ |
116,371 |
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In millions)
|
|
|
Years |
|
|||||||||
|
|
|
September 29, |
|
|
September 24, |
|
|
September 25, |
|
|||
|
Cash and cash equivalents, beginning of the year |
|
$ |
9,815 |
|
|
$ |
11,261 |
|
|
$ |
5,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|||||||||
|
Net income |
|
|
41,733 |
|
|
|
25,922 |
|
|
|
14,013 |
|
|
Adjustments to reconcile net income to cash generated by |
|
|
|
|||||||||
|
Depreciation and amortization |
|
|
3,277 |
|
|
|
1,814 |
|
|
|
1,027 |
|
|
Share-based compensation expense |
|
|
1,740 |
|
|
|
1,168 |
|
|
|
879 |
|
|
Deferred income tax expense |
|
|
4,405 |
|
|
|
2,868 |
|
|
|
1,440 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||||||
|
Accounts receivable, net |
|
|
(5,551 |
) |
|
|
143 |
|
|
|
(2,142 |
) |
|
Inventories |
|
|
(15 |
) |
|
|
275 |
|
|
|
(596 |
) |
|
Vendor non-trade receivables |
|
|
(1,414 |
) |
|
|
(1,934 |
) |
|
|
(2,718 |
) |
|
Other current and non-current assets |
|
|
(3,162 |
) |
|
|
(1,391 |
) |
|
|
(1,610 |
) |
|
Accounts payable |
|
|
4,467 |
|
|
|
2,515 |
|
|
|
6,307 |
|
|
Deferred revenue |
|
|
2,824 |
|
|
|
1,654 |
|
|
|
1,217 |
|
|
Other current and non-current liabilities |
|
|
2,552 |
|
|
|
4,495 |
|
|
|
778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated by operating activities |
|
|
50,856 |
|
|
|
37,529 |
|
|
|
18,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|||||||||
|
Purchases of marketable securities |
|
|
(151,232 |
) |
|
|
(102,317 |
) |
|
|
(57,793 |
) |
|
Proceeds from maturities of marketable securities |
|
|
13,035 |
|
|
|
20,437 |
|
|
|
24,930 |
|
|
Proceeds from sales of marketable securities |
|
|
99,770 |
|
|
|
49,416 |
|
|
|
21,788 |
|
|
Payments made in connection with business acquisitions, |
|
|
(350 |
) |
|
|
(244 |
) |
|
|
(638 |
) |
|
Payments for acquisition of property, plant and equipment |
|
|
(8,295 |
) |
|
|
(4,260 |
) |
|
|
(2,005 |
) |
|
Payments for acquisition of intangible assets |
|
|
(1,107 |
) |
|
|
(3,192 |
) |
|
|
(116 |
) |
|
Other |
|
|
(48 |
) |
|
|
(259 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing activities |
|
|
(48,227 |
) |
|
|
(40,419 |
) |
|
|
(13,854 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|||||||||
|
Proceeds from issuance of common stock |
|
|
665 |
|
|
|
831 |
|
|
|
912 |
|
|
Excess tax benefits from equity awards |
|
|
1,351 |
|
|
|
1,133 |
|
|
|
751 |
|
|
Dividends and dividend equivalent rights paid |
|
|
(2,488 |
) |
|
|
0 |
|
|
|
0 |
|
|
Taxes paid related to net share settlement of equity |
|
|
(1,226 |
) |
|
|
(520 |
) |
|
|
(406 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (used in)/generated by financing activities |
|
|
(1,698 |
) |
|
|
1,444 |
|
|
|
1,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash equivalents |
|
|
931 |
|
|
|
(1,446 |
) |
|
|
5,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the year |
|
$ |
10,746 |
|
|
$ |
9,815 |
|
|
$ |
11,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow disclosure: |
|
|
|
|||||||||
|
Cash paid for income taxes, net |
|
$ |
7,682 |
|
|
$ |
3,338 |
|
|
$ |
2,697 |
|
